Regional Differences Of Chinese Listed Companies' Capital Structure Factors

With over30years of reform and opening-up, China’s economic development has made remarkable achievements, the successful implementation of the planned economy system to market economic system, significantly enhance the comprehensive national strength, and also international status is rising. However, at the same time of rapid economic development in our country, due to the impact of political system background, policy preferences, geographical position, resources, environment and other factors, making China’s regional economic development, regional financial system structure, regional capital marker development a great imbalance, so the eastern region, the central region, the western region show their own characteristics in development level of economic, financial and capital market. The imbalance of regional development has made great difference in financing preference and financing channels of listed companies in different regions. How these differences affect listed companies’financing behavior and the choice of capital structure? What features will be presented by impact factors of capital structure in each region?Raised against such problems, first of all, we sort out the theoretical and empirical research on capital structure in this paper, and then according to the actual situation that the level of economic, financing development and the condition of capital market development in each region presents different characteristics and developing trend, we conducted an in-depth comparative analysis of regional economic development level, debt financing situation and financing behavior of listed companies. Through the study, we found that the eastern region’s economic development level is significantly higher than the central and western regions, the financing channels for enterprises is more diversified in eastern region, while the channels are relatively narrow and the financing efficiency is relatively low in central and western regions.On this basis, with regional differences as the research angle of view, according to the different regions, the listed companies will be divided into the eastern, central and western regions for comparative studies. We analyzed debt and management level in various regions by using the2008-2012shanghai non-financial a-share data of listed companies, the results showed that western region has the highest asset-liability ratio level. Then, using a static panel data model, the paper has carried on the empirical research on the influencing factor of capital structure. The study found that effect of company size, growth, profitability, operating efficiency, non-debt tax shields, tax effects, solvency, asset tangibility to capital structure are different in direction and size. In specific, the company size and profitability significantly affect the capital structure of listed companies in various areas while the impact direction is different; tax effect is not significantly affect the capital structure of listed companies on the eastern, central and western regions; the effect of growth, operating efficiency, non-debt tax shields, solvency, asset tangibility showed different characteristics on various regions.Finally, according to the results of this article, combined with China’s special national conditions and regional characteristics, in order to further expand the research perspective and research connotation of capital structure, the article put forward the corresponding suggestions such as the capital market construction, the perfection of tax system, the improvement of economic strength in the Midwest and management of enterprise, the diversification of financing channels and other aspects aim to achieve the improvement of financial market and the optimization of enterprise capital structure.